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Health Savings Account


Current rate up to 0.40% APY

With the rising cost of health care and many companies offering high deductible health care plans, UECU’s HSA helps you defray the cost of health care expenses. Our HSA earns a great high-yield dividend while helping you manage your health care.

  • Directly purchase or obtain ATM cash for your qualified medical expenses with your Free Advantages Visa® Debit Card™ - even earn VantagePoints™ on your signature-based purchases
  • No-fee Advantages Access Card™ can be used for ATM cash withdrawals or PIN-based merchant purchases for your qualified medical expenses
  • With UECU’s HSA you don’t have to worry about moving the account if you switch jobs
  • Contributions are tax-deductible, earnings are tax-deferred, and qualified distributions are tax-free and penalty-free


 

Health Savings Account Features:

HSAs were created by Congress through the Medicare, Prescription Drug, Improvement, and Modernization Act of 2003 and became effective on January 1, 2004. They were created in response to the rising cost of health care and health insurance and the larger number of individuals and families with high deductible health plans. The intent of Congress in passing the Health Savings Account (HSA) legislation was to provide financial incentive to employers of all sizes to provide health insurance and put health care decisions back in the hands of consumers.

  • Health Savings Account (HSA) are accounts insured by the NCUA up to $250,000 collectively for all savings products excluding IRAs
  • HSA contributions can be made by payroll deduction, employer deposit, check deposit, or funds transfer from a member's UECU share savings or checking accounts
  • Eligible contributions are fully tax deductible
  • Qualified Distributions are tax-free and penalty-free
  • Rollovers and direct transfers can be made from one HSA to another HSA or from a Medical Savings Account to an HSA
  • No required minimum distributions
  • Earns a high-yield dividend rate
  • Combined quarterly statement
  • With a UECU HSA, you can easily access your funds
    • Make medical purchases with the free Advantages Visa® Debit Card™ everywhere Visa is accepted - and earn VantagePoints™ rewards on your signature-based, point of sale card purchases
    • Obtain ATM cash to use on your health expenses at no charge with your Advantages Visa Debit Card™
    • Order checks if you prefer to write checks from your HSA to cover your medical expenses

What is a Health Savings Account (HSA)?
They are similar to IRAs in that contributions are tax deductible, earnings are tax deferred, and qualified distributions are tax-free and penalty-free. The account is also portable (you can retain the account after he/she changes employment or health insurance plans). Additionally, there is “no use it or lose it” provision as with Section 125 plans. HSAs are not, however, designed as long-term savings accounts.

You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not a high deductible health plan (HDHP). However, you can have additional insurance that provides benefits only for the following items:

  • Liabilities incurred under workers' compensation laws, tort liabilities, or liabilities related to ownership or use of property.
    • A specific disease or illness.
    • A fixed amount per day (or other period) of hospitalization.
    • Your funds will be automatically deposited into your Share Savings Account unless you instruct otherwise.
  • You can also have coverage (whether provided through insurance or otherwise) for the following items:
    • Accidents
    • Disability
    • Dental care
    • Vision care
    • Long-term care

The main requirement is that the individual must be covered under a qualified HDHP. The plan must meet both the requirements listed in the chart below:

Year Single Coverage HDHP Family Coverage HDHP
  Minimum Deductible Maximum Out-of-Pocket Minimum Deductible Maximum Out-of-Pocket
2016 $1,300 $6,550 $2,600 $13,100
2017 $1,300 $6,550 $2,600 $13,100
         
         

 

 

Year Single Coverage
Annual Limit

 
Family Coverage
Annual Limit

 
Over 55 Catch-Up
Contribution
2016 $3,350 $6,750 $1,000
2017 $3,400 $6,750 $1,000
       
       

 

 

 

Need Help?
Call 800-288-6423

 

APY=Annual Percentage Yield; Rate shown for balances $50,000 and greater; rate may vary after the account is opened. See Deposit Rates page for details.